ETHZilla CEO McAndrew Rudisill has disclosed that he decided to fully commit to Ethereum upon recognizing its potential within the nearly trillion-dollar global remittance sector.
Just two months later, his previously struggling biotechnology firm has risen to become the eighth-largest public Ethereum treasury globally.
“Ethereum serves as a conduit for the global money supply to flow in US dollars,” Rudisill shared with Cointelegraph.
The company originally operated under the name Life Sciences Corp, a Nasdaq-listed biotech entity, rebranding to ETHZilla Corporation in July, shortly after President Donald Trump signed the GENIUS Act into law, aimed at establishing regulations for stablecoins.
“Numerous real-world asset applications utilizing Ethereum are forthcoming,” he remarked, emphasizing Ethereum’s role as a store of value as well.
ETHZilla ranks as the eighth-largest Ether (ETH) treasury among 69 listed companies, holding over 102,000 tokens.
Rudisill indicated that the firm opted for Ether since the “race is currently on” to identify the leading blockchain, asserting that the “horse has left the barn” concerning Ethereum.
“A plethora of new networks created on layer 2s will interface with what we consider traditional finance activities today, encompassing structured credit and a variety of Wall Street applications.”
ETHZilla aims for “as much Ether as possible”
BitMine Immersion Technologies currently holds the largest Ether treasury, with 2.65 million tokens valued at over $11 billion, aiming to obtain 5% of the total supply.
Rudisill stated that ETHZilla does not have a specific target but desires to acquire “as much Ether as possible,” putting it to work across various L2 protocols to generate “substantially higher yield” than standard staking.
“We’re reallocating cash from Ether to invest in more and effectively enhance the L2 network, as this will ultimately facilitate Ethereum’s expansion,” Rudisill mentioned.
“ETHZilla exists to serve as a bridge between traditional finance and the digital finance landscape. Thus, possessing a substantial amount of Ethereum is essential to our mission.”
Ether’s value expected to rise alongside stablecoin growth
Currently, Ether is trading at $4,148, according to CoinGecko, with fluctuations between $3,846 and $4,226 in the past week.
Rudisill forecasts that a price of $20,000 for Ether within the next few years is entirely plausible, attributing this expectation to its historical consolidation phase and anticipated growth driven by stablecoins.
“Once it surpasses $5,000, I believe it will result from the infrastructure’s underlying base load becoming so constrained that it will elevate each level. I believe we’re approaching that point now.”
The GENIUS Act is still pending final regulations before enactment, yet analysts regard it as a potential catalyst for market growth.
Additionally, stablecoin transactions on the Ethereum network have already reached $158 billion, according to DefiLlama, in contrast to $77 billion on the second-largest network, Tron.
Expect more Ether-focused companies to emerge
As of now, Ether treasury firms collectively hold 5.5 million Ether, representing around 4.54% of the total token supply. Rudisill predicts that additional companies may venture into this domain but expresses skepticism regarding their long-term sustainability.
“There will be significant variation in quality and management teams, and I believe many will lack viable business models for endurance,” he remarked.
Simultaneously, Rudisill anticipates increased governmental engagement in cryptocurrency as authorities strive to avoid being left behind.
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“There’s a growing recognition that the financial infrastructure in many regions is outdated. If they do not engage with digital asset developments, they risk being left behind,” Rudisill stated.
“This trend explains why major banks and financial institutions are beginning to discuss other digital assets and accepting Bitcoin as collateral, given our current global transitional phase.”
Initially founded in 2016 as a clinical-stage biotechnology firm, Life Sciences went public in 2020. However, following its initial public offering, the stock plummeted by more than 99% over five years.
This decline was primarily due to revenue shortages and accumulating losses, but since ETHZilla’s pivot to Ether, the stock has experienced a 44% increase year-to-date, peaking in August at $10.70.
Rudisill asserted that while it’s accurate that numerous small public companies lacking a clear path either undergo restructuring or are delisted, ETHZilla stands apart.
“We are not merely a crypto treasury operation; we are establishing a cash-flow generating layer-2 protocol business with assets exceeding $1 billion,” he elaborated.
“Our emphasis lies on long-term technological progress and genuine utility, not fleeting financial strategies. The rebrand and pivot signify a definitive growth and innovation strategy, not merely a response to stock performance.”
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